News
"The US Treasury Department no longer intends to take a backseat in US bank regulation and is moving to the driver's seat instead.
Speaking at the American Bankers Association's Washington Summit on April 9, US Treasury Secretary Scott Bessent laid out a road map for the future of US bank regulation, a task given to him by President Donald Trump. Among those potential changes are tailored regulations for community banks, increased focus on financial risk versus management and governance, modernized capital requirements and reassessed capital buffers for large banks."
CDBA Members and Colleagues,
The past month has brought a wave of policy developments—and growing challenges—for the CDFI industry. Amid it all, your advocacy has made a meaningful impact. Thanks to the collective efforts of CDFIs and allies across the country, we’ve secured several key wins:
- Preserved FY25 funding for the CDFI Fund at FY24 levels, despite broader budget pressures.
- Affirmed the CDFI Fund’s full statutory authority, reinforcing the long-term stability of the program.
- Elevated the visibility and value of the CDFI Fund in public and policymaker discussions.
These are significant victories, and they reflect the strength of our collective voice. But as you know, advocacy doesn’t pause. Continued engagement remains essential:
- Stay connected: Let us know how you're using CDFI Fund resources—we want to highlight your work and elevate success stories.
- Stay informed: We’ll keep you updated on any changes from Treasury or OMB.
- Keep advocating: Real-world examples from your communities remain our most powerful tool in protecting and strengthening these programs.
We know we’ve asked a lot of you lately. But your efforts are paying off—and together, we're shaping the future of community development finance.
Thank you for your continued leadership and dedication.
Sincerely,
The CDBA Team
Click Read More to Catch Up on the Most Important CDFI Headlines From the Last Month.
"As the Department of Government Efficiency and other members of the administration continue clear-cutting the federal workforce, organizations that rely on the CDFI Fund to develop affordable housing, support minority-owned businesses and deliver disaster recovery in low-income parts of the country expressed concerns about what the order could mean for those efforts. CDFIs have a track record helping communities across the US, including the rural areas Trump has said he wants to help, so it's confusing for leadership of these organizations to be targeted. Considering current efforts to cut HUD staff and programs, including retrofit programs for older homes, the anxiety is well founded."
"In celebration of KeyBank's (NYSE: KEY) Bicentennial, the KeyBank Foundation is proud to announce a special grant program designed to strengthen Community Development Financial Institutions (CDFIs) that play a critical role in advancing affordable housing and small business development. This milestone initiative reflects KeyBank's enduring legacy of service, resilience, and commitment to fostering economic opportunity and strengthening communities.
Through this program, the KeyBank Foundation intends to award one $200,000 grant to an exemplary CDFI in each of KeyBank's 27 markets. These grants will provide flexible funding to help CDFIs in achieving their broader mission – whether through expanding services, enhancing infrastructure, or deepening their community impact—ensuring long-term sustainability and continued support for underserved populations."
"Community development financial institutions (CDFIs) have emerged as pivotal players in bridging financial gaps in underserved communities. Between 2014 and 2024, CDFIs grew sevenfold, reaching $436 billion in assets by the end of 2024.
This growth has enabled CDFIs to serve a growing number of places, especially residents and business owners in Black and Indigenous communities and communities of color. In particular, CDFIs played a critical role in helping business owners of color access vital Paycheck Protection Program dollars during the pandemic, at a time when conventional banks fell short."
"Credit insecurity is regionally concentrated, with concentrations in the South and Appalachia. Credit Insecure places have higher shares of the population who live in rural areas, do not have bachelor's degrees, and rent their homes."
"For the past three decades, a little-known fund housed in the U.S. Department of the Treasury has been quietly fueling economic growth in communities across the country. With an astonishing return on investment, the Community Development Financial Institutions, or CDFI, Fund has unlocked billions in private capital in economically distressed urban, rural and Native communities that are often overlooked by mainstream financial institutions. The CDFI Fund has a 30-year track record of providing resources to local CDFIs — loan funds, credit unions and banks — that finance what is important to Americans with low and moderate incomes: affordable housing; new childcare slots; growth for local businesses; and expanded health care facilities."
"The federal bank regulatory agencies today announced, in light of pending litigation, their intent to issue a proposal to both rescind the Community Reinvestment Act (CRA) final rule issued in October 2023 and reinstate the CRA framework that existed prior to the October 2023 final rule. The agencies will continue to work together to promote a consistent regulatory approach on their implementation of the CRA."
"Yesterday, the United States Senate confirmed Michael Faulkender to be the Deputy Secretary of the United States Department of the Treasury.
'It is an honor to be confirmed as the Deputy Secretary of the United States Department of the Treasury. Thank you, President Trump, for the trust and confidence you have placed in me, and I thank Secretary Scott Bessent for his unwavering support,' said Michael Faulkender. 'I look forward to working with Secretary Bessent in delivering prosperity for the American people, the reprivatization of our economy, national security through economic security, and working to support the President's America First agenda."'
"Community Development Financial Institutions (CDFIs) play a crucial role in providing financial services to low-income communities—areas often overlooked by traditional banks. These mission-driven lenders offer affordable loans to small businesses, schools, grocery stores, daycare centers, and homebuyers who would otherwise struggle to access capital, helping to spur economic growth and stability across the country. Shrinking or defunding CDFIs threatens to dismantle this vital system, cutting off financial access for those who need it most. Without CDFI funding, many will face an even steeper uphill battle to build businesses, secure housing, and create jobs, deepening economic disparities in states already facing significant financial challenges. In this article, we explore, as an example, how CDFIs benefit homebuyers across the state of Mississippi."
